The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-11-19
VARY in THEIR OPINIONS.
Is THE COMPRESS COMPANY 4
HEAVY LOSER BY THE FIRE9
The Question Discussed in All It's Phases
on 'Change-Forelgn Insurance Men
Talk About the Fire--Model for I'M
proving Cotton Shods.


The chief topic OF conversation yester-
day on change, where merchants do most
congregate, was the nayy-yard cotton com
press conflaTation, and its immediate and
remote results. The method Of storing
cotton, said many, should be changed.
Instead OF concentrating cotton bales in q
few immense sheds and congresses, cotton
should be scattered throughout number
OF smaller shed or warehouses, thereby re-
ducing the chances OF loss to a minimum,
and, ii fro comes, only comparatively
small number OF cotton bales can be sacri-
feed. This, however, was a remote ques-
ton, not TO be thought of the present sea-
son.
A leading compress company stockholdor
expressed the opinion OF very many other
factors interested in the company by say
ing at is no more the duty OF the com
press company TO insure the cotton OF the
buyer than TO insure that OF the factor who
stores with them. The company should
refuse to insure buyers cotton while in the
compress, and by adopting this rule it will
be much moro satisfactory to the buyer,
the banks and also TO the compress stock
holders. The custom, which is much more
hOnorcd in the breach than the observ-
ance, obtained few years ago when,
owing 10 freight blockade, exporters
cotton was detained at the compress
yards for quite a long time, and the
buyers induced Col. Montgomery,
the superintendent, TO take out policies of
insurance upon all such cotton 80 detained
for its protection. The year following
Col. Montgomery did likewise, and so it
became an established custom OF the com
press company. When il was protested
against by certain stockholders, Col.
Montgomery admitted that the thing was
wrong and ought TO be abolished, but how
TO do It at the time was puzzle that was
not solved, but which is likely TO be now"
II is n fact, however, that all buyers in
foreign account have all cotton purchased
insured at the other end, regardless OF the
insurance taken out by the compress COM
pany to protect the same cotton while at
the compress yards.
a well known buyer stated 10 the AP-
ZEAL reporter that when he received an
order from abroad 10 purchase a lot OF
cotton, Inc was always advised that when
ever the cotton passed over the scales at
the factors sheds. and the brand OF the
exporter WAS put on il, II was then az the
risk oi the exporter, that is, covered by in
surancc abroad, or at the other end.
The Memphis insurance companies and
the agencies here have not dollar upon
The comprvSscs, owing Ia the fact that they
insisted upon the insertion in all policies
oil the "co-insurncc' clause, aud Col.
Montgomery would not listen 10 any such
demand, 80 he placed his insurance vt
New Orleans, 81. Louis and New York,
with companies outside Of the compact,
which did not insist on the cO-insurncc
clause, The total insurance is said to be
S.IOO, 600, and the loss about S6jO,OO0 ON
cotton alone.
II Is asserted by members OF the Mer-
chants cotton compress directory that the
company will not lose q dollar by the
burning Of the cotton, because, they say,
the buyers on foreign account have the
burnt cotton insured, and this, with the
500, 900 insurance held by the compress
company, will bc more than sufficient to
pay the losses. They claim that where
cotton IL fully insured, ~ is the case with
foreign buyers, II cannot be insured
again. 10 the insurance held by the COM
press company cannot be held liable for
the loss. except ~ far as the loss NAV not
have been fully covered by the exporters.
On the other hand, buyers for foreign nc
count claim that the compress company
has nothing 10 do with any insurance at
the other end Of the line-st Liverpool or
other points ahroad-but that the com.
pn,ss company is liable for the full amount
OF the losses by fire ut the nayy-yard com.
press sheds. They further state that each
dray ticket they receive states that the
cotton received ut the congresses il in
surcd 10y the compress company, and that
they arr charged with comprising and in.
sur.Incc by the Said company for fifteen
days storage at the COMPRISES. This dif.
ference oi opinion ~ 10 the responsibility
for the losses sustained may end In a pm.
longcd law suit, brought TO settle the ycxcd
question OF insurance.
Quito large amount oi money WIS
paid yesterday by the banks on cotton de-
slroycd 10y irc on Thursday night, and on
policies Of insurance presented 10y buycrs,
aud Il j. stated that bankcn are now in.
sisiing ON buyers taking out insurance
policies and presenting them with the
compress receipts bclurc paying out money.
Upon all the above questions various opin-
ion, were expressed for md against the
responsibility OF the compress company
for the entire lo-scs, rcgapllcss oi
the insurance policies taken out by
the exporters nt the other end II
the line when the cotton passed from
the factors sheds 10 the possession oi the
buyers and became their property. 4
grJat deal will probably depend upon the
wording OF the contract between the com.
press company aud the railroads m A. 10
iiX the responsibility Tor luF-rs. Ono gem
tlcmnn stated that hc had purchased 100
bales, Ind gotten the compress receipts,
the railroad bill Of lading; the cotton had
been sold and paid ior east, and now the
cotton was lost in the fire. Those Gust
would look to the railroad company aud
the latter probably 10 the compress COM
pany, 10 ~ TO fix the risk where Il prop !
crly belongs.
iirc insurance business was quite lively |
yesterday. Merchants and shed men were |
strengthening their policies, so ~ 81 cover |
all losses, should n fire break out All |
these policies contained the reinsurance |
CLAUSE. l,ut, however the Troubles may !
b. settled, 10y law or by arbitration, Il may |
h. regarded ~ u'riain that the taking out |
ul insurance policies 10y the compress COM
hhllt to ItouFl buyers OF 'ollph' WIZ cnnr |
10 an end, and thereafter buyers like the |
iao,0rs, viii take ou, their own policies ON |
all cotton In compp'ss, aud the company |
will only have n protect iis presses aud !
other property by insurance.
vie~- OF Espcrt Foreigners.
Mr.. John NJ. D'Camp. Of Cincinnati, |
the general agent oi the Liverpool, Ion.
don and Globe Fire Insurance company, |
ri England, Il stopping at tie Gayoso